Thursday 10 June 2021 7:56 am

GameStop names Amazon veteran as CEO and says it may sell shares

GameStop has named the head of Amazon’s Australian business as its new CEO and said the struggling videogame retailer may sell new shares.

The announcement sent its volatile stock down seven per cent in extended trade and disappointed some of its enthusiastic fanbase of individual investors.

In a quarterly report that was stronger than analysts forecast, GameStop said it may sell up to 5m new shares which could be worth $1.4bn based on its latest share price.

Amazon veteran Matt Furlong, who has been at the company for nine years, will succeed George Sherman as CEO later this month.

GameStop also said that Mike Recupero, who spent over 17 years at Amazon, will succeed Jim Bell as chief financial officer in July.

“These appointments reflect the refreshed board’s focus on building a technology company and investing in growth,” GameStop said in a statement.

The firm’s shares have almost doubled in the past month to hover near their January high when a massive surge driven by Reddit investors shook up US markets.

Even after falling late last night, GameStop’s stock has gained more than 1,300 per cent in 2021.

While the recent rollout of new videogame consoles could benefit GameStop, analysts warned that its soaring share price has become disconnected from its day-to-day business.

Share
Tags: